Ghana’s banking sector faces significant pressure to reduce its high non-performing loan (NPL) ratio, currently at 23% according to the Bank of Ghana (BoG).
The central bank aims to cap NPLs at 10% of gross loans by December 2026. Local fintech platform MyCreditScore is positioning its data-driven approach as a key tool for financial institutions to achieve this target.
Analysis from the MyCreditScore Defaulter Pattern Report indicates loans processed through its platform exhibit lower default rates than the national average. The company analyzed over 21,000 credit records, identifying common defaulter characteristics: 73% held loans under GHS 25,000, 68% had informal or seasonal income, the average defaulter carried three or more loans with debt-to-income ratios exceeding 45%, and 67% defaulted within six months of account opening.
MyCreditScore utilizes a real-time scoring system incorporating variables such as age, occupation, location, payment history, and social media footprint. This enables tiered risk categorization and tailored credit limits. “Loans backed by data from MyCreditScore show significantly lower default rates,” states the company’s report. The platform projects lenders using its system could achieve a 25-30% reduction in defaults within six months, alongside faster loan decisions and lower operational costs for small loans.
Ghana’s economic growth relies heavily on accessible credit, particularly for small traders and informal workers. The MyCreditScore model demonstrates how data analysis can identify risk patterns and support safer lending decisions. With the BoG’s 10% NPL target set for 2026, data-driven credit assessment is becoming increasingly critical for Ghana’s financial stability and credit access expansion.
